The Impact Of Centralized Residence On The Agricultural Income Of Rural Households

Since the reform and opening up,China's agriculture has continued to develop and achieves remarkable achievements in the world.However,Problems exposes.Agricultural production is still dominated by the small-scale farming,and stays in the extensive way.Under such situation,It is difficult for farmers to adapt to the fierce market competition because of agricultural inefficiency,which dampens the increase of farmers' income.In order to improve the efficiency of rural land use and improve the living conditions of farmers,China has begun to implement rural centralized housing construction since 2004.The traditional ways of farmers have changed,which has an impact on farmers' income.The purpose of this paper is to evaluate the impact of centralized residence on rural households' agricultural income by using the National Coordinated Urban-Rural Comprehensive Supporting Reform supporting policy as an instrumental variable,and provide useful suggest for improvement of the policy.This article sorts out the existing literature focusing on agricultural production and concentrated residence.From the view of literature,factors affecting the adjustment of agricultural structure includes family characteristics,labor transfer,geographical transportation,market price,and policy factors.The effects of agricultural restructuring are also been summarized.The study of concentrated residence mainly focuses on mechanism of concentrated residence,the factors influencing the willingness to live,and the changes in the lives and welfare of farmers.The results of the literature review show that there is few research to study the agricultural income and structure of the farmers.The Local Average Treatment Effects and instrumental variable are the most important method used in the research.In empirical part,the article describes the method of IV,and gives descriptive statistics on variables.This paper reports the test results of instrumental variable independence,correlation,exclusion and monotony.The main results show that the average income of food crops,cash crops,and animal husbandry have declined,with the largest decline in income from food crops,followed by decline in animal husbandry income.Cash income declines the least.In the composition of agricultural income,the average proportion of food income and the average proportion of animal husbandry income decreases,and the average proportion of cash crop income increases.The study eliminates some sub-samples with inconspicuous one-stage regression to run robust tests.The empirical test of the remaining samples prove the robustness of the main regression results to some extent.The article reports the results of the heterogeneity analysis,the purpose of which is to find the conditions that affect the effect of the policy and provide a reference for policy recommendations.We further the article analyzes the path of concentrated residence affecting farmers' agricultural income: the transfer of land management rights,decrease of agricultural labor force,and the increase of agricultural production radius.After concentrated residence,farmers' agricultural income declines and non-agricultural income increases.We propose four feasible suggestions to improve concentrated residence policy:(1)Develop industries according to local conditions,and increase the support of industry and service department for modern agricultural development.(2)Increase investment in rural education,strengthen farmers' training on agricultural techniques,and attract more participants to provide agricultural training.(3)Develop new agricultural entities,strengthen the support of agricultural financial services for new agricultural entities,and promote a appropriate degree of land concentration by new agricultural entities.(4)Increase government subsidies to reduce the economic burden caused by rising prices of agricultural production materials.